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FIMA CORPORATION BERHAD
(21185-P) |
Annual Report
2016
NOTES TO THE FINANCIAL
STATEMENTS 31 MARCH 2016
(contd.)
35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
(b) Foreign Exchange Risk
The Group operates internationally and is exposed to various currencies, mainly Indonesian Rupiah.
Foreign currency denominated assets and liabilities together with expected cash flows from highly
probable purchases and sales give rise to foreign exchange exposures.
Foreign exchange exposures in transactional currencies other than functional currencies of the operating
entities are kept to an acceptable level. There are no material unhedged financial assets and financial
liabilities that are not denominated in the functional currencies of the Company and its subsidiaries.
Sensitivity analysis
The following table demonstrates the sensitivity of the Group’s profit net of tax to a reasonably possible
change in the Indonesian Rupiah (“IDR”) exchange rates against the functional currency of the affected
group companies (“RM”) with all other variables held constant.
The carrying amounts of the Group’s financial assets and liabilities denominated in foreign currency are
as follows:
2016
2015
RM’000
RM’000
IDR
Assets
- Trade and other receivables
21,841
19,857
- Cash and cash equivalents
18,427
45,089
40,268
64,946
Liabilities
- Trade and other payables
7,843
18,275
Group
2016
2015
Effect on
Effect on
profit
profit
net of tax net of tax
RM’000
RM’000
IDR - strengthens 5% (2015: 5%)
1,621
2,334
IDR - weakens 5% (2015: 5%)
(1,621)
(2,334)